Knowledge Network: Faculty & Research

By Frederick Andresen
Author of Walking on Ice, An American Businessman in Russia

“Their starting-point is different, and their courses are not the same; yet each of them seems to be marked out by the will of Heaven to sway the destinies of half the globe.” Alexis de Tocqueville had it right in 1831 about America and Russia. And his perspective is right today. How does the United States interact with its closest neighbor next to Canada and Mexico? Many Americans have worked hard at this. Some have failed and others have succeeded. Based on one of those successes, this nine-part series focuses on the issues and practices that make success happen in Russia today.

Part 1: Three Sides of the Coin

In December 1991 the Hammer and Sickle came down over a misty cold Red Square, and I went to Russia to start a telecom company. I had technical and management help from my friends in Newport Beach, Calif., but I was in Moscow alone and the opportunity was wide open. It was not long before I realized that clearly, like everywhere else, there are always two sides to the coin. But in Russia I often found three.

For the Russian people it was a time of great need and great expectations. And for more than a few, it was a time of great disappointment. It was a time left over from the last collapsing days of the Soviet era, when the common saying was, “I’ll pretend to work as long as you pretend to pay.”

There was no way to go but up in that chaotic residue of the Soviet Union and the stumbling progress of an emerging New Russia. Things were bleak. It was a good time to start a business in Russia.

The door was wide open. How could I fail in telecommunications when the central switching centers looked more like something out of the Smithsonian Museum?

That I knew little about the industry didn’t seem to matter. Between my experts back in California and the smart men and women I drew around me in Moscow, I learned enough to organize things to make it work. Telling my wife it would be only for six months, I went to get the job started — and it turned out to be a six-year job.

It was a difficult but exhilarating experience. I figured that after all, if it were easy, everyone would be doing it. My company, DirectNet Telecom, was a pioneer and named Company of the Year by the American Chamber of Commerce in Russia.

The venture was successful, providing advanced telecom services to Fortune 1000 companies in Russia, to major Russian businesses and to diplomatic offices, including the U.S. Embassy.

We installed and operated the first private satellite connection between the United States and downtown Moscow. But it was a step-by-step progression.

I was fortunate to gather around me in Russia some of the most dedicated, hard-working, ethical, intelligent and enjoyable young people I have ever worked with. I found a mutual sense of understanding and a team spirit toward the common goal.

Now after a total of 17 years with the Russians, I have to say that my Russian experience, with all its unexpected bumps and turns, has been the highlight of my international business career — enriching and enjoyable. And what was the key to this success? It is all about the people, developing relationships and, under it all, understanding and working within the culture. It’s what Thunderbirds call the Global Mindset, right?

>> Read Part 2: Walking on Ice
>> Read Part 3: Quest for Global Status
>> Read Part 4: The Burden of ‘Yes’
>> Read Part 5: Tollgates, Not Roadblocks
>> Read Part 6: The Rule of Thumbs
>> Read Part 7: Deciphering the Culture
>> Read Part 8: Power of Human Capital
>> Read Part 9: Five P’s of Success

Title: Walking on Ice: An American Businessman in Russia
Author: Frederick R. Andresen, a 1958 graduate of Thunderbird School of Global Management, specializes in general business management, marketing, entrepreneurship and relationship building in Russia and other emerging markets.
Endorsement: This book “is mandatory reading for all who contemplate a tour of duty whether government or business in Russia or who have worked there … it brings back memories and reality. With insight, understanding, and a rare degree of humor, Fred Andresen tells us about working with the Russians,” Richard Weden, general director, American Express Russia, 1995 to 2004.
ISBN: 978-1432713522
Publisher: Outskirts Press (September 2007)
Information: www.fandresen.com

Posted: 10|27|09 at 6:00 am.
Filed under: Emerging Markets, Entrepreneurship.
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